Any Copywriter Here Have Peformance Based Fees?

6 replies
Hi all,

Any copywriters here have a performance based fees included into your charges? If so, how does it work and how do you protect yourself from it being abused?
#based #copywriter #fees #peformance
  • Profile picture of the author CrispWords
    The best advice I can give is to charge a % on the gross sales, many clients will want to pay you after costs.

    Charge on gross sales, otherwise you may not be paid. As any good accountant knows, the name of the game is dwarfing profits with expenses. Avoid this by going with a gross % of what you pull in.
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    • Profile picture of the author colmodwyer
      Originally Posted by CrispWords View Post

      The best advice I can give is to charge a % on the gross sales, many clients will want to pay you after costs.

      Charge on gross sales, otherwise you may not be paid. As any good accountant knows, the name of the game is dwarfing profits with expenses. Avoid this by going with a gross % of what you pull in.
      The financial publisher I worked for wouldn't pay that. They do % of sales after refunds... so you're incentivised not to write greasy copy that refunds high.

      Colm
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  • Profile picture of the author shawnlebrun
    yes, i charge an up front fee as well as a % of sales... usually for those clients who actually have a profitable, sustainable business. let's not kid ourselves, we as copywriters know that's actually pretty rare.

    anyways, in direct mail you could charge a royalty per piece mailed, say 5 cents per piece.

    but on the internet, its a bit trickier... so i usually set a % of gross sales as long as the ad is up and running.

    if the payments stop coming in, i technically still own copyright, so i shut the site down. you can contact their web host and send a notice of copyright infringment. but again, it's not something you'll run into unless you're working with the big boys... and they'll usually be the first to pay copywriters what they're worth, on time, etc... they understand and recognize the value of good copy.

    i know of some copywriters who will insist that their letter goes onto a domain that they choose, and the client must use that... and if they stop paying royalties or the % of sales agreed upon, they just take over the domain, since they own it.

    anything can be worked out, just draft up a simple letter of agreement and usually, when you're dealing with honest folks, being taken advantage of doesn't happen often.
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  • Profile picture of the author michaelhearne
    I've done all the things mentioned on this page and a few others... I always get a fee up front that I'd be happy with if nothing else ever comes through... Then....

    My favorite is a % of gross sales... I've had my percentage tied to hitting a specific conversion rate - as in if I hit X% then my royalties kick in...

    I've also done % of net - as long as net is clearly defined - gross sales - refunds - affiliate commissions = net profit (as an example)... When Id o this I ask for a highger percentage...

    I've also done beat the control pieces where the performance bonus was a specific lump sum dollar amount for hitting a specific conversion rate...

    And I've also done direct mail where I received a few pennies for every piece mailed...

    And then I guess my reall favorite is when I partner up with someone and take a big chunk of equity for writing a few Google Docs

    I always have a clause in my contract that gives me the right to audit their numbers - and I ususally just avoid folks where i have a doubt about getting paid (after learning that lesson the hard way)...

    I like Shawn's way of doing it where he retains copyright and can yank it at any time - I'd like to hear more about how you pull that off bro!!!
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  • Profile picture of the author fated82
    Thanks for eveyone's feedback. I want to implement the % gross sales, but How do you track? Do you control the whole sales process?
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  • Profile picture of the author videolover7
    Originally Posted by fated82 View Post

    Hi all,

    Any copywriters here have a performance based fees included into your charges? If so, how does it work and how do you protect yourself from it being abused?
    When I was writing for clients, I used an eleven-point client analysis to determine whether I'd work with the person or not.

    In the end, it boils down to trust. You just have to make a judgment.

    VL
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